Objectives:
Warm Up:
Agenda:
1. Describe
economic concepts
that apply to
satisfying economic
wants.
Explain the
difference between
an economic need
and an economic
want.
1. Complete
warm-up
2. Explain the role
of capital
formation in an
economy.
List two examples
of each
2. Econ 101
PowerPoint
3. Group
activity
4. Bottom Line
1
 Economic

Wants
The desire for scarce material goods and services
 Non-Economic

Wants
The desire for nonmaterial things that are not scarce
(air, sunshine, friendship, happiness, respect)
Ability
of a good or service
to satisfy a want
A
good or service that has
utility is a useful good or
service
Possession
Form
Time
Place
Form
Change in the form or shape of a product
Ex: clothing that has a particular fabric or style
you desire
Place
Having a product or service where a customer can
buy it
Ex: available in a nearby store
Time
Having a product or service available at a certain
time of year or a convenient time of day
Ex: Is the store open when you are ready to buy?
Possession
Transfer of ownership (rent, borrow, buy)
Ex: Is the product/service available at a price you
can afford and are willing to pay?
Entrepreneurship
Land (natural
resources)
Capital
Goods
Labor
Land
Anything provided by nature that affects
productive ability
Ex: fertile soil, minerals, water
Labor
Human effort into production, can be physical
and mental
Ex: employee knowledge and skills
Capital
Goods
Equipment used to produce other goods
Ex: buildings, tools, machines
Entrepreneurship
Ownership of a business
Ex: starting a business (planning, managing,
risk)
 Capital

Formation
Steel used to produce tools rather than the final
product, a car.
 Immediate

Using steel to create tools needed for final
production will decrease the number of final
products (not enough steel for car production)
 Future

Reaction
Reaction
Having the tools to create the final product will,
over time, allow for more cars to be produced.
Labor!
Land!
Capital!
Entrepreneur!
Objectives:
Warm Up:
Agenda:
Discuss three
economic systems
and three political
systems.
Explain why no
country has enough
resources to satisfy
all the wants of all
people for material
goods and services.
1. Complete
warm-up
2. Economic and
Political
systems P.P.
3. Group activity
4. Individual
activity
5. Bottom Line
Explain why a
business considers
the economicpolitical system of
a country.
Write this down in
your binder.
21
 Scarce
resources
 Capital
goods vs. Consumer goods/Final product
 Answer
the what, how, and for whom questions
An organized way for a country to decide
how to use its productive resources…..
 What
to produce
 How
to produce
 Who
should we produce for
23
 Market economy
 individual buying decisions
in the marketplace
determine what, how, and for whom goods and
services will be produced
 Command economy
 central planning authority,
under control of
government, owns most of the factors of
production and determines what, how, and for
whom goods and services will be produced
 Mixed economy
 aspects of a market
and a command economy are
used to make decisions about what, how, and for
whom goods and services will be produced
24
 Capitalism
 private citizens

are free to go into business for
themselves
produce whatever they choose, and distribute
what they produce
 Socialism
 government
controls the use of the country’s
factors of production
 Communism
 all or almost
(extreme socialism)
all of a nation’s factors of
production are owned by the government
25
 Checkpoints:




Page 55
Page 56
Page 58
Page 61
 3.1
Assessment on page 56
 3.2
Assessment on page 61
 Review

Terms and Concepts on page 75
1,2,3,5,8,10, 12,13,16,17,18,19,20,21,22,23,24,25
Objectives:
Describe why
private property is
important to
capitalism.
Describe how
prices are set in a
capitalistic system.
Warm Up:
Agenda:
Get into your groups
and continue
working on the
activity from
Wednesday.
1. Complete
warm-up
2. Individual
assignment
3. Review of
assignment
4. Fundamentals
of capitalism
P.P.
5. Bottom Line
27
Objectives:
Warm Up:
Describe why
private property is
important to
capitalism.
Write a paragraph
describing what
capitalism is
Describe how
prices are set in a
capitalistic system.
Agenda:
1. Complete
warm-up
2. Fundamentals
of capitalism
P.P.
3. Bottom Line
28
Private property (basic feature of capitalism)

individuals have the right to own, use, and sell.
Own Land
 Hire Labor
 Own Capital Goods

If you make it, you own it!
Why is private property important to capitalism?
With the right to buy, own, and sell property,
individuals can control productive resources.
29
Total money received from customers minus
the total cost to produce the products or
services.
 Cost
of land, labor, capital, materials
 Roughly
5% of the cost of goods and services
is considered profit
30
Produce goods or services that people want at a
price they are willing to pay.
Demand vs. Want
 Demand
= number of products that will be
bought (want, ability, willingness)
 Want
= desire, but not ability or willingness to
buy products
31
Relationship between demand and price
 Increased
 Decrease
demand = Increased price
demand = Decrease price
Price
Supply is the number of products that will be
offered for sale.
How supply influences price:
Decrease supply = Increase price
Increase supply = Decrease price
 Based
on what we just learned, how is price
determined?
 Supply
 Prices
and Demand
are the result of the decisions of
individual consumers to buy products and
of individual producers to make and sell
products
35
 Rivalry
among sellers for consumers’
dollars
 How can competition in business benefit
society?
Improved quality of products
 Develop new products
 Operate efficiently to keep prices
down

What are some of the ways you can attract
customers over your competitors?
 Lowering
prices
 Provide better quality
 Adding features
 Unusual and colorful packaging
 Extensive advertising campaign
 The
existence of one seller of a product
 No competition

Could charge unreasonably high prices
 Customers
don’t have a choice if
they need or want a product/service
 Check
your grades in Infinite Campus.
 Marking
Period 1 grades are due by
Wednesday!
Objectives:
Warm Up:
Describe the
economy and all
the components of
an economy.
Take out your
binder and place it
on your desk for the
notebook check.
Agenda:
1. Complete
warm-up
2. Review the
assignment
from yesterday.
3. Managing the
Economy P.P.
4. Study Guide
5. Bottom Line
40
Demand
Supply
The quantity of goods and
services that producers are
willing and able to provide

The willingness and
ability of consumers to
buy goods and services
When Supply > Demand,
the Price goes DOWN

When Demand > Supply,
the Price goes UP


Slide 41
• The economy - the activities related to
making and distributing goods and
services.
• A market economy is based on the law
of supply and demand. (U.S)
o The price is determined by what
consumers are willing to pay and sellers
are willing to accept.
Slide 42
Four Stages: Recovery, Peak, Recession, Trough
Slide 43
…growing…



…slowing…
People buy goods and
services
Jobs are created
Businesses are hiring



Slide 44
People buy fewer
goods and services
Fewer people are
hired; there are
layoffs
Businesses are not
growing